The company will sell its Panama City branch, including its insurance portfolio, to ASSA Compañía de Seguros for around $172m (£131m, €145m).
Based in Panama City, ASSA was founded in 1982 and offers life and general insurance products in Costa Rica, Nicaragua, El Salvadore and Guatemala.
Through ASSA, Generali confirmed it will, however, remain active in Panama with its international business lines, namely Generali Employee Benefits, Generali Global Corporate & Commercial and Europ Assistance.
Generali has operated in Panama since 1970, mainly in the property and casualty insurance segment.
Efficiency increase
The disposal, which is still subject to regulatory approvals, is part of Generali’s strategy to slash costs and boost profits by pulling out of smaller markets.
Last month, the company announced it had completed the sale of its business in Guatemala and signed an agreement to dispose of its Colombian division.
“We are making good progress in the optimization of our geographical footprint,” said Frédéric de Courtois, chief executive of Generali’s global business lines & international.
“We just announced the disposal of Colombia and the transaction of Guatemala and this deal will further help us to achieve our targets and to pursue our strategy to make Generali a simpler and smarter company”.
Earlier in the year, international news agency Reuters reported that the insurance giant has asked advisory bank Rothschild to find a new owner for its subsidiaries in Colombia, Panama and Ecuador.
There is speculation that the company’s branch in the Ecuadorian capital of Quito could be the next to go.
